Conan has some pretty awesome representatives, I'd bet money (to be sent to CONAN AID in the event of his termination) that he walks away with a sizable settlement. His lawyers could drag it to court, say NBC was not operating in good faith (that a show called The Tonight Show is pretty much void after 12 AM) and other tricky legal mumbo-jumbo and drag NBC through the mud.
Look, they're trying to get this Comcast thing going. I doubt the last thing everyone wants is a long, drawn-out legal proceeding that will become tabloid fodder for Nikki Finke. Conan walks away with cash and his dignity.
Leno resumes his post, goes back to first place, but his image has taken a massive hit that he will not be able to recover from entirely.